Alphabet: Shares Drop 10% Despite Earnings Beat

Alphabet delivered rising revenue and strong profits in its most recent quarter, yet shares fell 10% in a single session and erased $500 billion in market value. The selloff reflects Wall Street’s concern that AI is dismantling the search advertising engine faster than new revenue streams can replace it, while the company pours hundreds of billions into chips and data centers. Background data from the past year shows Alphabet capex already pressuring search growth metrics, confirming the transition risk that triggered the drop.